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ATLANTIC CITY-Potential buyer Coastal Marina LLC and seller Trump Entertainment Resorts have revised their contract for the sale of the Trump Marina Hotel Casino here, including a sharp reduction in price. The deal originally called for the property to turn over for $316 million, although that price could be reduced in $5-million increments tied to the property not hitting specified cash flow targets.

The new sale price is $270 million and is fixed, with no performance stipulations. The revised deal also permits Trump to terminate the agreement if the sale doesn’t close before May 29, 2009. It stipulates a 60-day extension beyond that date, if required, to get any necessary regulatory approvals. The revised agreement also waives this week’s deadline for financing commitments by Coastal Marina to complete the sale.

Coastal Marina, an affiliate of New York City-based Coastal Development headed by Richard Fields, a one-time protégé of Donald Trump, has also upped its cash exposure a bit for the deal. “The purchase deposit paid to Trump Entertainment Resorts has been increased…from $15 million to $17 million, and the original $15 million held in escrow will be released immediately to Trump Entertainment Resorts,” reads a joint statement issued by the two companies. “The parties are currently pursuing discussions to allow Coastal Marina to begin construction, prior to the closing of the transaction, on certain key components of the…retheming project, provided [that] adequate measures are implemented to ensure the completion of such construction.”

When the original sale agreement was announced in May, Coastal Marina simultaneously revealed that it had reached an agreement with entertainer Jimmy Buffett and his Margaritaville Corp. to rebrand and retheme the property as the Margaritaville Marina Resort & Casino. That makeover is slated to encompass the 14-acre, 27-story property’s 728 rooms, 79,000 sf of gaming area, 58,000 sf of ballroom and meeting space and 540-seat theater. The property also includes a rooftop helipad and nine-story parking garage, and a lease agreement for the adjacent, state-owned Sen. Frank S. Farley Marina.

Representatives of Coastal Marina and Trump Entertainment Resorts could not be reached for further comment.

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